System and method for managing insurance of valuables having unpredictable fluctuating values

• US 7,089,191 B2
• Filed: 12/18/2002
• Issued: 08/08/2006
• Est. Priority Date: 12/18/2001
• Status: Expired due to Fees

• Current Assignee: Yaron Baron
• Original Assignee: Silver Bell Finance Inc.
• Inventors: Nativ, Rafi, Baron, Yaron, Engelmayer, David
• Primary Examiner(s): Thomas, Joseph
• Assistant Examiner(s): PASS, NATALIE
• Application Number:
  US10/323,712
• Publication Number:
  US 20030144888A1
• Time in Patent Office: 1,329 Days
• Field of Search: 705/4, 705/35, 705/37, 705/36, 705/2, 705/39, 705/38, 705/40
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method for insuring a stock option issued by an individual company from among a population of companies, to a beneficiary from among a population of beneficiaries, against loss of working ability of the beneficiary and consequent loss of the stock option, the stock option being vestable on at least one vesting date, the method including computing an economic risk factor characterizing the behavior of stock options in the population of companies and an actuarial risk factor characterizing the likelihood of loss of working ability in the population of beneficiaries and, on at least one vesting date, computing a premium based on the economic and actuarial risk factors and on the value of the shares on the vesting date.

Claims

1. A method for insuring valuables having unpredictable fluctuating values against an insurance event, the method comprising:

for each of a plurality of insurance policies, each insuring valuables having an unpredictable fluctuating value on behalf of a beneficiary, against an insurance event, in return for payment of a premium by a predetermined paying entity;

preselecting at least one future date at which at least a predefined portion of the value of the valuables is to be computed using a programmed digital computer;

predetermining a formula for computation of a premium as a function of the value of the valuables as computed on said at least one future date; and

on said at least one future date, computing, using a programmed digital computer, the predefined portion of the value of the valuables and, if the insurance event occurred, remitting said value to the beneficiary; and

on said at least one future date, if the insurance event did not occur, computing, using a programmed digital computer, the premium using said formula and debiting said premium to said paying entity.

2. A method according to claim 1 wherein said step of debiting said premium to said paying entity comprises:

collecting an advance payment before said future date; and

on said at least one future date, subtracting the advance payment from said premium and debiting the resulting sum, if positive, to said paying entity.

3. A method according to claim 2 and also comprising crediting the resulting sum, if negative, to said paying entity.

4. A method according to claim 1 wherein said valuables comprise stock options.

5. A method according to claim 1 wherein said valuables comprise a stock option defining a plurality of vesting dates and a plurality of stock amounts associated therewith and said preselecting step comprises preselecting each vesting date as a future date and defining the stock amount associated with each vesting date as the predefined portion of the value of the valuables to be computed on that future date.

6. A method for insuring a stock option issued by an individual company from among a population of companies, to a beneficiary from among a population of beneficiaries, against loss of working ability of the beneficiary and consequent loss of the stock option, the stock option being vestable on at least one vesting date, the method comprising:

computing, using a programmed digital computer, an economic risk factor characterizing the behavior of stock options in the population of companies and an actuarial risk factor characterizing the likelihood of loss of working ability in the population of beneficiaries; and

on said at least one vesting date, computing, using a programmed digital computer, a premium based on the economic and actuarial risk factors and on the value of the shares on the vesting date.